Decker Outdoor shares climbed +4% Tuesday, on a rating upgrade by the Bank of America Merrill Lynch.
Bank of America analysts raised their rating on the footwear company’s stock to buy from neutral. Analyst Rafe Jadrosich also upped his price target to $180 from $150.
In a note to investors, Jadrosich mentioned earnings per share growth opportunity from Decker’s share buybacks, and low-to-mid single digit revenue growth (largely driven by the company’s HOKA brand) as factors behind the analyst’s optimism. According to the analyst, HOKA is expected to grow +40% in fiscal year 2019, thanks to new product offerings and market share gains in the running specialty segment.
Jadrosich believes that gross margin of Decker’s brand UGG could be at its peak, and that there is operating margin opportunity from cost savings and improving HOKA margins.
The RSI Oscillator for DECK moved out of oversold territory on April 22, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 21 similar instances when the indicator left oversold territory. In of the 21 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on DECK as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DECK just turned positive on April 26, 2024. Looking at past instances where DECK's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DECK advanced for three days, in of 364 cases, the price rose further within the following month. The odds of a continued upward trend are .
DECK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where DECK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
DECK moved below its 50-day moving average on April 09, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DECK crossed bearishly below the 50-day moving average on April 11, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DECK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DECK entered a downward trend on April 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DECK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DECK's P/B Ratio (11.351) is slightly higher than the industry average of (3.484). P/E Ratio (33.628) is within average values for comparable stocks, (28.646). DECK's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.937). Dividend Yield (0.000) settles around the average of (0.048) among similar stocks. P/S Ratio (5.921) is also within normal values, averaging (1.925).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributor of footwear, apparel and accessories
Industry ApparelFootwear